Canada Royal Milk to invest in new baby formula facility in Kingston

Canada Royal Milk, a subsidiary of Chinese firm Feihe International is set to establish a new baby formula production facility in Kingston, Ontario, Canada.

The facility, which will be Feihe’s first outside China, is expected to create nearly 277 new jobs in the region.

Feihe will invest C$225m ($175m), while Ontario will contribute up to C$24m ($18.7m) for the project through its Jobs and Prosperity Fund – Food and Beverage Growth Fund.

Ontario Minister of Agriculture, Food and Rural Affairs Jeff Leal said: “We’re excited to welcome Feihe International to Ontario.

“In addition to bringing good jobs to the Kingston community, this project will also open up new opportunities for our dairy and goat producers to continue to grow and thrive.

“By partnering with food processing companies like Feihe International, we are not only supporting growth in Ontario’s agri-food sector, but we are helping boost our province’s economy.”

The funding will be used by the company for purchasing and installing new processing and packaging equipment for its facility that will help it to boost productivity and local production.

Set to be operational in 2020, the plant will require significant volumes of milk, which will support the growth of dairy cow and goat sectors in Ontario.

Feihe International chairman Youbin Leng said: “Ontario and Qigihar, Heilongjiang, where Feihe’s milk resources are located, are both situated in the World’s Golden Milk Belt at 47 degrees north latitude where its natural environment is the most ideal place for producing premium quality dairy products.”